Most any defect on the blade can be removed by hand sanding, but will take some work and the proper grites. What grits are you using.

Even then, sometimes you have to decide if you want to leave some pitting or remove too much metal.

Greaseless polishing is an alternative, but is aggressive,can be dangerous and will require a bench buffer. I have tried it with a Dremel and have not had good results, as the wheel contact area is too small and can make for a wavy blade.

Some photos of the problem areas of you blade and a change in hand sanding techniques might be a better and safer.